Key Terms of Marketing

Chapter 1:

Marketing : "meeting needs profitably" or the process by which companies create value for customers and build
strong customer relationships in order to capture value from customers in return.

Needs: States of felt deprivation

Wants: The form human needs take as they are shaped by culture and individual personality

Demands: Human wants that are backed by buying power

Marketing Myopia: The mistake of paying more attention to the specific products a company offers than to the
benefits and experiences produced by these products

Production Concept: The idea that consumers will favor products that are available and highly affordable and that
the organization should therefore focus on improving production and distribution efficiency

Product Concept: The idea that consumers will favor products that offer the most quality, performance, and
features and that the organization should therefore devote its energy to making continuous product improvements

Selling Concept: The idea that consumers will not buy enough of the firm's products unless it undertakes a large-
scale selling and promotion effort

Marketing Concept: A philosophy that holds that achieving organizational goals depends on knowing the needs
and wants of target markets and delivering the desired satisfactions better than competitors do.

Societal Marketing Concept: The idea that a company's marketing decisions should consider consumers' wants, the
company's requirements, consumers' long-run interests, and society's long-run interests

Customer Relationship Management: The overall process of building and maintaining profitable customer
relationships by delivering superior customer value and satisfaction

Customer-Perceived Value: The customer's evaluation of the difference between all the benefits and all the costs
of a marketing offer relative to those of competing offers

Customer Satisfaction: The extent to which a product's perceived performance matches or exceeds a buyer's
expectations

Customer-Managed Relationships: Marketing relationships in which customers, empowered by today's new

digital technologies, interact with companies and with each other to shape their relationships with brands

Consumer-Generated Marketing: Brand exchanges created by consumers themselves (both invited and uninvited)
by which consumers are playing an increasing role in shaping their own brand experiences and those of other
consumers

Partner Relationship Management: Working closely with partners in other company departments and outside the
company to jointly bring greater value to customers
Customer Lifetime Value: The value of the entire stream of purchases that the customer would make over a
lifetime of patronage

Share of Customer: The portion of the customer's purchasing that a company gets in its product categories

De-Marketing: the demand for a product which (1) a firm cannot supply in large-enough quantities, or (2) does not
want to supply in a certain region where the high costs of distribution or promotion allow only a too little profit
margin.

Common De-Marketing Strategies: Higher prices, scaled-down advertising, and product redesign

Chapter 2:

Strategic planning: The process of developing and maintaining a strategic fit between the organization's goals and
capabilities and its changing marketing opportunities. It involves defining a clear company mission, setting
supporting objectives, designing a sound business portfolio, and coordinating functional strategies

Mission statement: A statement of the organization's purposewhat it wants to accomplish in the larger
environment

Growth-share matrix: A portfolio method that evaluates a company's strategic business units in terms of their
market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.

Product/market expansion grid: A portfolio-planning tool for identifying company growth opportunities through
market penetration, market development, product development, or diversification

Market segmentation: Dividing a market into distinct groups of buyers who have distinct needs, characteristics, or
behavior and who might require separate products or marketing mixes

Marketing audit: A comprehensive, systematic, independent, and periodic examination of a company's

environment, objectives, strategies, and activities to determine problem areas and to recommend a plan of action to
improve the company's marketing performance

S.W.O.T. Analysis: An overall evaluation of the company's strengths, weaknesses, opportunities, and threats

Chapter 3:

Marketing environment: The actors and forces outside marketing that affect marketing management's ability to
build and maintain successful relationships with target customers.

Microenvironment: The actors close to the company that affect its ability to serve its customers the company,
suppliers, marketing intermediaries, customer markets, competitors, and publics.

Macroenvironment: The larger societal forces that affect the microenvironmentdemographic, economic, natural,
technological, political, and cultural forces.

Marketing intermediaries: Firms that help the company to promote, sell, and distribute its goods to final buyers.

Public: Any group that has an actual or potential interest in or impact on an organization's ability to achieve its
objectives.
Demography: The study of human populations in terms of size, density, location, age, gender, race, occupation, and
other statistics.

Baby boomers: The 78 million people born during years following World War II and lasting until 1964.

Generation X: The 45 million people born between 1965 and 1976 in the "birth dearth" following the baby boom.

Millennials (or Generation Y): The 83 million children of the baby boomers, born between 1977 and 2000.

Economic environment: Economic factors that affect consumer purchasing power and spending patterns.

Natural environment: Natural resources that are needed as inputs by marketers or that are affected by marketing
activities.

Environmental sustainability: Developing strategies and practices that create a world economy that the planet can
support indefinitely.

Technological environment: Forces that create new technologies, creating new product and market opportunities.

Political environment: Laws, government agencies, and pressure groups that influence and limit various
organizations and individuals in a given society.

Cultural environment: Institutions and other forces that affect society's basic values, perceptions, preferences, and
behaviors.

Chapter 4:

Marketing information system : People, equipment, and procedures to gather, sort , analyze, evaluate, and
distribute needed, timely, and accurate information to marketing decision makers

Internal databases: Electronic collections of information obtained from data sources within the company

Competitive marketing intelligence: The systematic collection and analysis of publicly available information
about competitors and developments in the marketing environment

Marketing research: The systematic design, collection, analysis, and reporting of data relevant to a specific
marketing situation facing an organization

Exploratory research: Marketing research to gather preliminary information that will help define problems and
suggest hypotheses

Secondary data: Information that already exists somewhere, having been collected for another purpose

Primary data: Information collected for the specific purpose at hand

Survey research: The gathering of primary data by asking people questions about their knowledge, attitudes,
preferences, and buying behavior

Experimental research: The gathering of primary data by selecting matched groups of subjects, giving them
different treatments, controlling related factors, and checking for differences in group responses
Focus group interviewing: Personal interviewing that involves inviting 6 to 10 people to gather for a few hours
with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group
discussion on important issues.

Customer relationship management: Managing detailed information about individual customers and carefully
managing customer touch points to maximize customer loyalty.

Chapter Five:

Consumer buyer behavior: The buying behavior of final consumersindividuals and households who buy goods
and services for personal consumption

Consumer market: All the individuals and households who buy or acquire goods and services for personal
consumption

Culture: The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and
other important institutions

Subculture: A group of people with shared value systems based on common life experiences and situations

Group: Two or more people who interact to accomplish individual or mutual goals

Opinion leader: Person within a reference group who, because of special skills, knowledge, personality, or other
characteristics, exerts influence on others

Lifestyle: Measures (1) how people spend their time engaging in activities, (2) what is of most interest or
importance to them in their immediate surroundings, and (3) their opinions and views about themselves and the
world around them. Together, these three areas are generally referred to as Activities, Interests, and Opinions, or
simply AIOs.

Personality: The unique psychological characteristics that lead to relatively consistent and lasting responses to one's
own environment

Motive (drive): A need that is sufficiently pressing to direct the person to seek satisfaction of the need

Perception: The process by which people select, organize, and interpret information to form a meaningful picture of
the world

Learning: Changes in an individual's behavior arising from experience

Belief: A descriptive thought that a person holds about something

Attitude: A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or
idea

Complex buying behavior: Consumer buying behavior in situations characterized by high consumer involvement
in a purchase and significant perceived differences among brands

Variety-seeking buying behavior: Consumer buying behavior in situations characterized by low consumer
involvement but significant perceived brand differences
Information search: The stage of the buyer decision process in which the consumer is aroused to search for more
information; the consumer may simply have heightened attention or may go into active information search

Motivation Research: The qualitative research designed to probe consumers' hidden, subconscious motivations

Maslow's "Hierarchy of Needs": Physiological needs (hunger, thirst), safety needs (security, protection), social
needs (sense of belonging, love), esteem needs (recognition, status), self-actualization needs.

Selective Perception: The tendency for people to screen out most of the information to which they are exposed

Stages in the Adoption Process: Awareness, Interest, Evaluation, Trial, Adoption

Chapter 6:

Business Marketing (Industrial Marketing): the marketing of goods and services to individuals and organizations
for purposes other than personal consumption

Business-to-business electronic commerce: the use of the internet to facilitate the exchange of goods, services, and
information between organization

Stickiness: a measure of a Web site's effectiveness; calculated by multiplying the frequency of visits by the duration
of a visit by the number of pages viewed during each visit (site reach)

strategic alliance: A cooperative agreement between business firms

relationship commitment: a firm's belief that an ongoing relationship with another firm is so important that the
relationship warrants maximum efforts at maintaining it indefinitely

keiretsu: A network of interlocking corporate affiliates

original equipment manufacturers: individuals/organizations that buy business goods incorporating them into
products they produce for sale

North American Industry Classification System: (NAICS) a detailed numbering system developed by the US,
Canada, and Mexico to classify North American business establishments by their main production process

Derived demand: Business demand that ultimately comes from (derives from) the demand for consumer goods.

Joint demand: the demand for two or more items used together in a final product

Multiplier effect (accelerator principle): Phenomenon in which a small increase or decrease in consumer demand
can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Reciprocity: A practice whereby business purchasers choose to buy from their own customers.

Major equipment (installations): Capital goods such as large or expensive machines, mainframe computers, blast
furnaces, generators, airplanes, and buildings.

Accessory equipment: Goods, such as portable tools and office equipment, that are less expensive and shorter-lived
than major equipment.
Raw materials: Basic substance in its natural, modified, or semi-processed state, used as an input to a production
process for subsequent modification or transformation into a finished good.

Component parts: either finished items ready for assembly or products that need very little processing before
becoming part of some other product

Processed materials: Products used directly in manufacturing other products

Supplies: Consumable items that do not become part of the final product

Business services: expense items that do not become part of a final product

Buying center: All those people in an organization who become involved in the purchase decision

New buy: Situation requiring the purchase of a product for the first time

Modified rebuy: A situation where the purchaser wants some change in the original good or service

Straight rebuy: A situation in which the purchaser reorders the same goods or services without looking for new
information or investigating other suppliers

Chapter 7:

Market Segmentation : Dividing a market into smaller segments of buyers with distinct needs, characteristics, or
behaviors that might require separate marketing strategies or mixes

Market Targeting (Targeting): Evaluating each market segment's attractiveness and selecting one or more
segments to enter

Differentiation: Differentiating the market offering to create superior customer value

Positioning: Arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing
products in the minds of target customers

Geographic Segmentation: Dividing a market into different geographical units, such as nations, states, regions,
counties, cities, or even neighborhoods

Demographic segmentation: Dividing the market into segments based on variables such as age, life-cycle stage,
gender, income, occupation, education, religion, ethnicity, and generation

Gender Segmentation: Dividing a market into different segments based on gender

Income Segmentation: Dividing a market into different income segments

Psychographic Segmentation: Dividing a market into different segments based on social class, lifestyle, or
personality characteristics

Behavioral Segmentation: Dividing a market into segments based on consumer knowledge, attitudes, uses, or
responses to a product

Occasion Segmentation: Dividing the market into segments according to occasions when buyers get the idea to
buy, actually make their purchase, or use the purchased item
Benefit Segmentation: Dividing the market into segments according to the different benefits that consumers seek
from the product

Target Market: A set of buyers sharing common needs or characteristics that the company decides to serve

Undifferentiated (Mass) Marketing: A market-coverage strategy in which a firm decides to ignore market
segment differences and go after the whole market with one offer

Differentiated (segmented) Marketing: A market-coverage strategy in which a firm decides to target several
market segments and designs separate offers for each

Concentrated (Niche) marketing: A market-coverage strategy in which a firm goes after a large share of one or a
few segments or niches

AIO Analysis: 1. How people spend their time engaging in activities

2. What is of most interest or importance to them in their immediate surroundings
3. Their opinions and views about themselves and the world around them

Generally referred to as Activities, Interests, and Opinions

Requirements for Effective Segmentation

1. Measurable: the size, purchasing power of the segment can be measured.

2. Accessible: segment can be easily reached and served
3. Substantial: Segment is large or profitable
4. Differentiable: the segments are distinguishable and respond differently to different marketing mix elements
5. Actionable: effective programs can be created to attract people

Chapter 8:

Product: Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a
want or need

Service: An activity, benefit, or satisfaction offered for sale that is essentially intangible and does not result in the
ownership of anything

Consumer Product: A product bought by final consumers for personal consumption

Convenience Product

A consumer product that customers usually buy frequently, immediately, and with minimal comparison and buying
effort

Shopping Product: A consumer product that the customer, in the process of selecting and purchasing, usually
compares on such attributes as suitability, quality, price, and style

Specialty Product: A consumer product with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort

Unsought Product: A consumer product that the consumer either does not know about or knows about but does not
normally consider buying
Industrial Product: A product bought by individuals and organization for further processing or for use in
conducting a business

Brand: A name, term, sign, symbol, or design, or a combination of these, that identifies the products or services of
one seller or group of sellers and differentiates them from those of competitors

Packaging: The activities of designing and producing the container or wrapper for a product

Product Line: A group of products that are closely related because they function in a similar manner, are sold to the
same customer groups, are marketed through the same types of outlets, or fall within given price ranges

Product Portfolio/Mix: The set of all product lines and items that a particular seller offers for sale

Service Intangibility: Services cannot be seen, tasted, felt, heard, or smelled before they are bought

Service Inseparability: Services are produced and consumed at the same time and cannot be separated from their
providers

Service Variability: The quality of services may vary greatly depending on who provides them and when, where,
and how they are provided

Service Perishability: Services cannot be stores for later sale or use

Brand Equity: The differential effect that knowing the brand name has on customer response to the product or its
marketing

Brand Name Selection

1. Relation to product/service offered

2. Easy to pronounce, recognize, and remember
3. Distinctive
4. Extendable
5. Translate easily into foreign languages
6. Capable of registration and legal protection

Store Brand (or private brand): A brand created and owned by a reseller of a product or service

Co-Branding: The practice of using the established brand names of two different companies on the same product
(dairy queen/girl scout cookies)

Line Extension: Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an existing
product category

Brand Extension: Extending an existing brand name to new product categories

Product Mix 4 Dimensions

1. Width: Number of different product lines company has

2. Length: Total number of products in a product line
3. Depth: Number of versions offered for each product in product line
4. Consistency: How closely the product lines are in use.
4 Service Characteristics

1. Service Intangibility
2. Inseparability
3. Variability
4. Perishability

Chapter 9:

2 Ways to Obtain New Products

1. Acquisition: by buying a whole company

2. New Product Development: original product

New Product Development Process: The development of original products, product improvements, product
modifications, and new brands through the firms own product development

Idea Generation: The systematic search for new product ideas

Idea Screening: Screening new product ideas to spot good ideas and drop poor ones as soon as possible

Product Concept: A detailed version of the new product idea stated in meaningful consumer value

Concept Testing: Testing new product concepts with a group of target consumers to find out if the concepts have
strong consumer appeal

Marketing Strategy Development : Designing an initial marketing strategy for a new product based on the product
concept

Business Analysis: A review of the sales, costs, and profit projections for a new product to find out whether these
factors satisfy the company's objectives

Product Development: Developing the product concept into a physical product to ensure that the product idea can
be turned into a workable marketing effort

Test Marketing: The stage of new product development in which the product and its proposed marketing program
are tested in realistic marketing settings

Commercialization: Introducing a new product into the market

Product Life Cycle: The course of a products sales and profits over its lifetime

Introduction Stage: The PLC stage in which a new product is first distributed and made available for purchase

Growth Stage: The PLC stage in which a products sales start climbing quickly

Maturity Stage: The PLC stage in which a products sales growth slows or levels off

Decline Stage: The PLC stage in which a products sales fade away

Chapter 11:
Price: Price is the amount of money charged for a product or service. It is the sum of all the values that consumers
give up in order to gain the benefits of having or using a product or service.

Value-based pricing: Value-based pricing uses the buyers perceptions of value, not the sellers cost, as the key to
pricing. Price is considered before the marketing program is set.

Good-value pricing: offers the right combination of quality and good service to fair price

Everyday low pricing: (EDLP) involves charging a constant everyday low price with few or no temporary price
discounts

High-low pricing: involves charging higher prices on an everyday basis but running frequent promotions to lower
prices temporarily on selected items

Value-added pricing: attaches value-added features and services to differentiate offers, support higher prices, and
build pricing power

Pricing power: is the ability to escape price competition and to justify higher prices and margins without losing
market share

Cost-based pricing: involves setting prices based on the costs for producing, distributing, and selling the product
plus a fair rate of return for its effort and risk

Cost-plus pricing: adds a standard markup to the cost of the product Market-

Break-even pricing: is the price at which total costs are equal to total revenue and there is no profit

Target profit pricing: is the price at which the firm will break even or make the profit its seeking

Skimming Pricing: Setting a high price for a new product to skim maximum revenues layer by layer from the
segments willing to pay the high price; the company makes fewer but more profitable sales

Market-Penetration Pricing: Setting a low price for a new product in order to attract a large number of buyers and
a large market share

Discount: A straight reduction in price on purchases during a standard period of time or in larger quantities

Allowance: Promotion of money paid by manufactures to retailers in return for an agreement to feature the
manufacture products In some way

Promotional Allowances: Are payments or price reductions that reward dealers for participating in advertising and
sales support programs

Psychological Pricing: Pricing that considers the psychology of prices and not simply the economics; the price is
used to say something about the product

Reference Prices: Prices that the buyers carry in their minds and refer to when they look at a given product
FOB- Origin Pricing: A geographic pricing strategy in which good s are placed free on board a carrier; the
customer pays the freight from the factory to the destination

Uniform-Delivered Pricing: A geographic pricing strategy in which the company charges the same price plus
freight to all customers, regardless of their location

Zone Pricing: A geographic pricing strategy in which the company sets up two or more zones. All customers
within a zone pay the same total price; the more distant the zone, the higher the price

Basing-Point Pricing: A geographic pricing strategy in which the seller designates some city as a basing point and
charges all customers the freight cost from that city to he customer

Freight-Absorption pricing: A geographic pricing strategy in which the seller absorbs all or part of the freight
charges in order to get the desired business

Chapter 12:

Value delivery network: A network composed of the company, suppliers, distributors, and, ultimately, customers
who "partner" with each other to improve the performance of the entire system in delivering customer value.

Marketing channel (or

distribution channel): A set of interdependent organizations that help make a product or service available for use or
consumption by the consumer or business user.

Channel level: A layer of intermediaries that performs some work in bringing the product and its ownership closer
to the final buyer.

Direct marketing channel: A marketing channel that has no intermediary levels.

Indirect marketing channel: Channel containing one or more intermediary levels.

Channel conflict: Disagreement among marketing channel members on goals, roles, and rewards who should do
what and for what rewards.

Conventional distribution channel: A channel consisting of one or more independent producers, wholesalers, and
retailers, each a separate business seeking to maximize its own profits, even at the expense of profits for the system
as a whole.

Vertical marketing system (VMS): A distribution channel structure in which producers, wholesalers, and retailers
act as a unified system. One channel member owns the others, has contracts with them, or has so much power that
they all cooperate.

Corporate VMS: A vertical marketing system that combines successive stages of production and distribution under
single ownership channel leadership is established through common ownership.

Contractual VMS: A vertical marketing system in which independent firms at different levels of production and
distribution join together through contracts.

Franchise organization: A contractual vertical marketing system in which a channel member, called a franchisor,
links several stages in the production-distribution process.
Administered VMS: A vertical marketing system that coordinates successive stages of production and distribution
through the size and power of one of the parties.

Horizontal marketing system: A channel arrangement in which two or more companies at one level join together
to follow a new marketing opportunity.

Multichannel distribution system: A distribution system in which a single firm sets up two or more marketing
channels to reach one or more customer segments.

Disintermediation: The cutting out of marketing channel intermediaries by product or service producers or the
displacement of traditional resellers by radical new types of intermediaries.

Marketing channel design: Designing effective marketing channels by analyzing customer needs, setting channel
objectives, identifying major channel alternatives, and evaluating those alternatives.

Intensive distribution: Stocking the product in as many outlets as possible.

Exclusive distribution: Giving a limited number of dealers the exclusive right to distribute the company's products
in their territories.

Selective distribution: The use of more than one but fewer than all the intermediaries who are willing to carry the
company's products.

Marketing channel management: Selecting, managing, and motivating individual channel members and
evaluating their performance over time.

Marketing logistics (or physical distribution): Planning, implementing, and controlling the physical flow of
materials, final goods, and related information from points of origin to points of consumption to meet customer
requirements at a profit.

Supply chain management: Managing upstream and downstream value-added flows of materials, final goods, and
related information among suppliers, the company, resellers, and final consumers.

Distribution center: A large, highly automated warehouse designed to receive goods from various plants and
suppliers, take orders, fill them efficiently, and deliver goods to customers as quickly as possible.

Intermodal transportation: Combining two or more modes of transportation.

Integrated logistics management: The logistics concept that emphasizes teamworkboth inside the company and
among all the marketing channel organizationsto maximize the performance of the entire distribution system.

Third-party logistics (3PL) provider: An independent logistics provider that performs any or all of the functions
required to get a client's product to market.

Chapter 13:

Retailing: All activities involved in selling goods or services directly to final consumers for their personal, non-
business use

Retailer: A business whose sales come primarily from retailing

Shopper marketing: using in-store promotions and advertising to extend brand equity to "the last mile" and
encourage favorable point-of-purchase decisions

Specialty stores: carry a narrow product line with a deep assortment within that line. apparel stores, sporting-goods
stores, furniture stores, florists, and bookstores

Department stores: carry several product linestypically clothing, home furnishings, and household goodswith
each line operated as a separate department managed by specialist buyers or merchandisers. Sears, Macy's, Marshall
Field's

Supermarkets: A relatively large, low-cost, low margin, high volume, self-service operation designed to serve the
consumer's total need for food and household products. Kroger, Vons, A&P, Food Lion

Convenience stores: Relatively small stores located near residential areas, open long hours seven days a week, and
carrying a limited number of high turnover convenience products at slightly higher prices. 7-Eleven, Stop-N-Go,
Circle K

Superstores: Very large stores traditionally aimed at meeting consumers' total needs for routinely purchased food
and nonfood itemsinclude category killers, supercenters, and hypermarkets

Category killer: a giant specialty store that carries a deep assortment in a particular category and has a
knowledgeable staff, like Circuit City, Petsmart, Staples, Barnes and Noble

Service retailer: a retailer whose product line is actually a service. hotels or banks

Discount store: a store that carries standard merchandise sold at lower prices with lower margins and higher
volumes. Walmart, Target

Off-price retailers: Sell merchandise bought at less-than-regular wholesale prices and sold at less than retail: often
leftover goods, overruns, and irregulars obtained at reduced prices from manufacturers or other retailers. discount
stores, factory outlets, warehouse clubs, Mikasa, TJ Maxx, Costco, Sam's, BJ's Wholesale Club

Independent off-price retailer: A retailer that is both independently owned and run or is a division of a larger retail
corporation

Factory Outlet: An off-price retailing operation that is owned and operated by a manufacturer and that normally
carries the manufacturer's surplus, discontinued, or irregular goods

Warehouse club: an off-price retailer that sells a limited selection of brand name grocery items, appliances,
clothing, and a hodgepodge of other goods at deep discounts to members who pay annual membership fees

Corporate Chain stores: two or more outlets that are owned and controlled in common, have central buying and
merchandising, and sell similar lines of merchandise

Franchise organizations: Contractual association between a franchiser (manufacturer, wholesaler, or service

organization) and franchisees (independent business people who buy the right to own and operate one or more units
in the franchise system)

Shopping center: A group of retail businesses planned, developed, owned, and managed as a unit
Wheel-of-retailing concept: a concept of retailing that states that new types of retailers usually begin as low-
margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually
becoming like the conventional retailers they replaced

Wholesaling: All activities involved in selling goods and services to those buying for resale or business use

Wholesaler: A firm engaged primarily in wholesaling activity

Merchant wholesaler: Independently owned business that takes title to the merchandise it handles

Broker: A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together

Agent: A wholesaler who represents buyers or sellers on a relatively permanent basis, performs only a few
functions, and does not take title to goods

Manufacturers' sales branches and offices: Wholesaling by sellers or buyers themselves rather than through
independent wholesalers

Supercenter: a combined supermarket and discount storeWal-Mart Supercenters, Super Target, Super Kmart
Center

Hypermarket: an extremely large store that combines supermarket, discount, and warehouse retailingCarrefour
in France, Pyrca in Spain

"High-low" pricing: charging higher prices on an everyday basis, coupled with frequent sales and other price
promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full
prices

Retail convergence: The merging of customers, products, prices, and retailers

Chapter 14:

Marketing communications mix (promotion mix): The specific mix of advertising, personal selling, sales
promotion, and public relations a company uses to persuasively communicate customer value and build customer
relationships

Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an
identified sponsor

Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service

Public relations: Building good relations with the company's various publics by obtaining favorable publicity,
building up a good "corporate image," and handling or heading off unfavorable rumors, stories, and events

Personal selling: Personal presentation by the firm's sales force for the purpose of making sales and building
customer relationships

Direct marketing: Direct communications with carefully targeted individual consumersthe use of telephone,
mail, fax, email, the internet, and other tools to communicate directly with specific consumers
Integrated marketing communications (IMC): The concept under which a company carefully integrates and
coordinates its many communications channels to deliver a clear, consistent, and compelling message about the
organization and its products

Buyer-readiness stages: The stages consumers normally pass through on their way to purchase, including
awareness, knowledge, liking, preference, conviction, and purchase

Personal communication channels: Channels through which two or more people communicate directly with each
other, including face to face, person to audience, over the telephone, or through the mail

Word-of-mouth communication: Personal communication about a product between target buyers and neighbors,
friends, family members, and associates

Buzz marketing: Cultivating opinion leaders and getting them to spread information about a product or service to
others in their communities

Non-personal communication channels: Media that carry messages without personal contact or feedback,
including major media, atmospheres, and events

Affordable method: Setting the promotion budget at the level management thinks the company can afford

Percentage-of-sales method: Setting the promotion budget at a certain percentage of current or forecasted sales or
as a percentage of the unit sales price

Competitive-parity method: Setting the promotion budget to match competitors' outlays

Objective-and-task method: Developing the promotion budget by 1) defining specific objectives, 2) determining
the tasks that must be performed to achieve these objectives, and 3) estimating the costs of performing these tasks

Push strategy: A promotion strategy that calls for using the sales force and trade promotion to push the product
through channels. The producer promotes the product to wholesalers, the wholesalers promote to retailers, and the
retailers promote to consumers

Pull strategy: A promotion strategy that calls for spending a lot on advertising and consumer promotion to build up
consumer demand. If the strategy is successful, consumers will ask their retailers for the product, the retailers will
ask the wholesalers, and the wholesalers will ask the producers.

Sender: The party sending the message to another party

Encoding: The process of putting thought into symbolic form

Message: The set of symbols that the sender transmits

Media: The communication channels through which the message moves from sender to receiver

Decoding: The process by which the receiver assigns meaning to the symbols encoded by the sender

Receiver: The party receiving the message

Response: The reactions of the receiver after being exposed to the message

Feedback: The part of the receiver's response communicated back to the sender
Noise: The unplanned static or distortion during the communication process, which results in the receiver's getting a
different message than the one the sender sent

AIDA Model: Attention, Interest, Desire, Action

Rational appeals: Appealing to the audience's self-interest. "

Emotional appeals: Attempt to stir up either negative or positive emotions that can motivate purchase. "With every
waking moment, love grows. A diamond is forever."

Atmospheres: designed environments that create or reinforce the buyer's learnings toward buying a product

Events: staged occurrences that communicate messages to target audiences.

Chapter 15:

Advertising: Any paid form of non-personal presentation and promotion of ideas, goods, or services by an
identified sponsor

Advertising objective: A specific communication task to be accomplished with a specific target audience during a
specific period of time

Advertising agency: A marketing services firm that assists companies in planning, preparing, implementing, and
evaluating all or portions of their advertising programs

Sales promotion: Short-term incentives to encourage the purchase or sale of a product or service

Sample: A small amount of a product offered to customers for trial

Coupon: Certificate that gives buyers a saving when they purchase a specified product

Cash refund offer (rebate): Offer to refund part of the purchase price of a product to consumers who send a "proof
of purchase" to the manufacturer

Price pack (cents-off deal): Reduced price that is marked by the producer directly on the label of package

Premium: Good offered either free or at low cost as an incentive to buy a product

Advertising specialty: Useful article imprinted with an advertiser's name, given as a gift to consumers

Patronage reward: cash or other award for the regular use of a certain company's products or services

Point-of-purchase (POP) promotion: Display and demonstration that takes place at the point of purchase or sale

Contests, sweepstakes, games: Promotional events that give consumers the chance to win somethingsuch as
cash, trips, or goodsby luck or through extra effort

Discount: A straight reduction in price on purchases during a stated period of time

Allowance: Promotional money paid by manufacturers to retailers in return for an agreement to feature the
manufacturer's products in some way
Public relations: Building good relations with the company's various publics by obtaining favorable publicity,
building up a good "corporate image," and handling or heading off unfavorable rumors, stories, and events

Chapter 18:

Competitive Advantage: An advantage over competitors gained by offering consumers greater value

Market Leader: The firm in the industry with the largest market share

Market Challenger: A runner-up firm that is fighting hard to increase its market share in an industry

Market Follower: A runner-up firm that wants to hold its share in an industry without rocking the boat

Market Nicher: A firm that serves small segments that the other firms in the industry overlook or ignore

Customer-Centered Company: A company that focuses on customer developments in designing its marketing
strategies and delivering superior value to its target customers

Competition-Centered Company: A company whose moves are mainly based on competitor's actions and
reactions

Market-Centered Company: A company that pays balanced attention to both customers and competitors in
designing its marketing strategies

Strategic Group: A group of firms in an industry following the same or a similar strategy

Benchmarking: Comparing the company's products and processes to those of competitors or leading firms in other
industries to identify best practices and find ways to improve quality and performance

Competitor Analysis: Identifying key competition; assessing their objectives, strategies, strengths and weaknesses,
and reaction patterns; and selecting which competitors to attack or avoid

Competitive Marketing Strategies: Strategies that strongly position the company against competitors and give the
company the strongest possible strategic advantage

Chapter 19:

Global Firm: A firm, by operating in more than one country, gains R&D, production, marketing, and financial
advantages

Global Environment: The forever changing marketing environment of the world that creates opportunities and
problems

Tariff: Taxes on certain imported products designed to raise revenue or protect domestic firms

Economic Community: A group of nations organized to work towards a common goals in the regulation of
international trade

FTAA: Federal Trade Area of the Americas = trade agreement for the Americas that there will eliminate/reduce
trade barriers
CAFTA-DR: Free Trade agreement for small group of developing countries with America originally the Dominican
Republic

Exporting: Direct & Indirect: Entering foreign markets by selling goods produced in the company's home country,
often with little modification. Indirect ----- sell through companies already in the other country

Joint Venturing: Entering foreign markets by joining with foreign companies to produce or market a product or
service

Licensing: Entering foreign markets through developing an agreement with a license in the foreign market

Contract Manufacturing: A joint venture in which a company contracts with manufactures in a foreign market to
produce its product or provided its service

Management Contracting: A joint venture in which the domestic firm supplies the management know how to a
foreign company that supplies the capital; domestic firm exports management services rather than products

Joint Ownership: A cooperative venture in which a company creates a local business with investors in a foreign
market who share ownership and control

Direct Investment: Entering a foreign market by developing foreign based assembly or manufacturing facilities

Standardized Global Marketing: An international marketing strategy that basically uses the same marketing
strategy and mix in all of the companies international markets

Adapted Global Marketing: An international marketing approach that adjusts the marketing strategy and mix
elements to each international target market, which creates more costs, but hopefully produces a larger market share
and return

Straight Product Extension: Marketing a product in a foreign market without making any changes to the product

Product Adaptation: Adapting a product to meet local conditions or wants in foreign markets

Product Invention: Creating a new product or services for foreign markets

Quotas: Limits on the amount of foreign imports that they will accept into the country

Non-Tariff Barriers: Excessive host country regulations or enforcement